In a divided district, a Georgia bankruptcy court held that the tax sale purchaser held a secured claim that the plan could modify under Code § 1322(b)(2) and pay over the term of the plan. The court reasoned that under state law, legal title to the property remained with the debtor. As a result, the…
Archives for 2019
Can a Bankruptcy Court Award Emotional Distress Damages of $119,000 for Discharge Injunction Violations?
Yes. The 9th Circuit Court recently held that the bankruptcy court’s award of $119,000 in emotional distress damages to a Chapter 7 debtor was reasonable given the facts and circumstances of the mortgage servicer violations, The Court upheld the bankruptcy court’s decision finding that award was reasonable and supported by the evidence. As a result…
Can a Bankruptcy Court Impose Refiling Bar if a Debtor Files Four Consecutive Bare-Bones Bankruptcy Cases to Stop a Foreclosure Proceeding?
Yes. In a recent decision, a North Carolina Bankruptcy Court imposed a one (1) year bar on the debtor’s ability to refile their case. The court imposed this bar where the debtor had filed four (4) consecutive bare-bones bankruptcy cases in order to stop a foreclosure proceeding. The court noted that all of the “bare-bones”…
Does a Credit Union’s policy of requiring payment of a discharged debt before the debtor can open a new account violate the Discharge Injunction?
No. A New York bankruptcy court held that a credit union’s policy of not permitting a bankrupt debtor to open an account at the credit union unless the debtor repaid the debt that was owed to the credit union and discharged in the debtor’s bankruptcy case did not violate the discharge injunction. The court reasonned…
Can Parent Plus Loan payments be reduced?
Yes. Parent Plus loans do not qualify for any income driven repayment plan. However, if you consolidate the loans into a qualifying loan, you can apply for an income contingent repayment plan.
Can an LLC judgment creditor “pierce the corporate veil” and hold a Chapter 7 debtor personally liable for that debt?
It depends on the facts and circumstances of each case. An Oklahoma bankruptcy court held that a judgment creditor could not pierce the corporate veil under Oklahoma law to hold the Chapter 7 debtor personally liable, as the sole owner of an LLC, for the creditor’s judgment debt against the LLC, in a proceeding to…
Are the Chapter 13 “Debt Limitations” determined by the creditors’ claims?
No. In a recent Illinois case, the court held that the Chapter 13 debt limits were determined by schedules filed in good faith, not by amount of thecreditor’s proof of claims. If your secured debts (mortgages and liens) add up to more that $1,184,200, or your unsecured debts add up to more than $394,725, Chapter…